Coldwater Creek to Layoff 20% of Workforce

Sandpoint, ID—Coldwater Creek, which recently announced it was exploring a possible sale or other strategic alternative, said Tuesday that it would be reducing its workforce by some 20% in a cost-cutting measure.

The women’s specialty retailer has been struggling to turn around business through “restructuring and cost reduction program” which hopes to save $20 million to $25 million. The layoffs and restructuring are expected to cost the retailer about $3 million in severance and other expenses.

It is a move that Coldwater Creek hopes will improve its financial and competitive position, making it more efficient and profitable, according to a press release.

“The decision to downsize our workforce, in conjunction with our other cost reduction initiatives, was a very difficult one,” said Jill Dean, president/ceo. “We appreciate the many contributions of all our employees, and we will provide support to those affected during this transition period.”

Perella Weinberg Partners was hired to help Coldwater Creek’s board of directors evaluate its options, but no timetable was given for the process.

Related

Like this? Share it!

Jeff Prine, Editor at Large, Accessories Magazine Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com